Allergan Enters Into Exclusive Distribution Agreement With Surgical Instrument System AG; Allergan to Distribute State-of-the-Art Amadeus Microkeratome.

Business Editors & Health/Medical Writers

IRVINE, Calif.--(BW HealthWire)--May 15, 2000

Allergan (NYSE:AGN) announced today that it has entered into an exclusive, multi-year, distribution agreement with Surgical Instrument Systems AG (SIS) of Biel, Switzerland. Under the agreement, Allergan maintains the right to commercialize the Amadeus(TM) microkeratome in both North America and Latin America. SIS will be responsible for the manufacture and supply of the Amadeus(TM) microkeratome, a United States Food and Drug Administration approved device.

The Amadeus(TM) microkeratome combines a unique and simple-to-use computer monitoring unit, one-handed operation, a highly reliable vacuum system, and an integrated blade-loading system. These design features provide safety, simplicity and predictability to the refractive surgeon.

"Allergan is very pleased to enter into the microkeratome distribution agreement with SIS for the Amadeus(TM). This superb Swiss-made device is viewed by the leading refractive surgeons involved in the clinical testing protocols as one of the finest and most precise microkeratomes available on the market today," said David E. I. Pyott, Allergan's President and Chief Executive Officer.

"This SIS agreement, combined with our recently established marketing alliance with VISX Incorporated, the market leader in excimer laser systems in the U.S., will provide the market with an unparalleled procedural product offering within the nearly $3 billion U.S. refractive ophthalmic surgical market. These arrangements add additional breadth and strength to Allergan's ophthalmic pharmaceutical and cataract surgery franchises," continued Mr. Pyott. "The distribution agreement with SIS and marketing alliance with VISX are further examples of Allergan's commitment to rapidly growing high technology segments of the ophthalmic surgical market. The nature of these relationships is an example of the need in today's business environment to cooperate in partnerships beyond the borders of one's company to deliver maximum value to stockholders and customers alike."

Market analysts estimate that approximately 960,000 refractive procedures occurred in the United States during 1999, growing to 1.3 million in 2000 and project an annual growth rate between 20% and 30% for the next five years. There are approximately 15,000 practicing ophthalmologists in the U.S. with 6,000 trained to perform refractive surgery. Currently, only 3,400 of these ophthalmologists regularly perform refractive procedures as part of their practice. It is estimated that over 52 million Americans are candidates for refractive surgery and have the means to afford the procedure.

Allergan, Inc. headquartered in Irvine, California, is a technology-driven global health care company providing eye care and specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder, and dermatological markets that deliver value to our customers, satisfy unmet medical needs and improve patients' lives.

Forward-looking Statement 

Any of the above statements that refer to the company's estimated or anticipated future results are forward-looking and reflect the company's current analysis of existing trends and information. Actual results may differ from current expectations based on a number of factors affecting Allergan's businesses, including competitive conditions and changing market conditions, and product performance, including physicians and facilities acceptance of the Amadeus(TM) microkeratome. These forward-looking statements represent the company's judgment only as of the date of this press release. Actual results could differ materially from those described in this release. As a result, the reader is cautioned not to rely on these forward-looking statements. The company disclaims, however, any intent or obligation to update these forward-looking statements.

Additional information concerning these factors can be found in press releases as well as in the company's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Certain Factors and Trends Affecting Business" in the company's 1999 Form 10-K. Copies of company press releases and additional information about Allergan are available on our Web Site at www.allergan.com, or you can contact our Investor Relations Department by calling 714-246-4636.